The Hindu Business Line : KSCB draws up new schemes

One of the schemes is for extending loans for the purchase of agricultural lands of a maximum of five acres. The loan amount, which will be advanced on mortgage of the land, will have a ceiling of Rs 25 lakh, according to Mr K.R. Aravindakshan, President of the bank.

The loans will be given through the KSCB branches as also the district co-operative banks. For this purpose as well as for granting home loans, the bank has earmarked Rs 200 crore under a refinancing scheme of the National Housing Bank (NHB).

Another new scheme announced in the budget is for advancing loans to traders for expanding their business. With three traders offering sureties among themselves, an amount of Rs 1 lakh will be sanctioned for each of them. Besides, under a "Co-bank Abhaya" scheme, five persons can join together to offer sureties among themselves for taking a loan of Rs 5,000 each to expand business in fish, fruits and vegetables.

These loan schemes form part of the bank's commitment to liberating the small-time vendors from the clutches of private financiers, the president said. Under a scheme called "Co-bank Vidhyadhan", the bank offers educational loans ranging from Rs 50,000 to Rs 25 lakh to students pursuing professional education within the country and abroad.

The bank's budget for 2005-06 projects an income of Rs 285.06 crore and expenditure of Rs 275 crore, leaving a profit of Rs 10.06 crore. The deposits during the year are projected at Rs 2,690 crore, which represents an increase of Rs 290 crore over the current year.

The bank expects to receive Rs 453.80 crore from various funding agencies such as Nabard, IDBI, National Co-operative Development Corpo- ration and NHB during the year.

Out of the Rs 2,066.50 crore of anticipated lending, Rs 300 crore will be for disbursal of short-term loans exclusively to the agricultural sector.

The short-term lending to the non-agricultural sector will be to the tune of Rs 500 crore, which will be disbursed through the district co-operative banks.

A similar amount has been set apart for various kinds of personal and institutional loans. These will be made available through the branches of the apex bank. The budget has also allocated Rs 240 crore for extending loans to public sector undertakings.

Mr Aravindakshan said the process of automation in all the branches of KSCB will be completed by the end of the current year. Apart from three NRI branches to be set up soon in Thiruvananthapuram, Ernakulam and Kozhikode, three new branches will be opened in Kasaragod, Kottayam and Guruvayur.

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